Truck Transportation Jobs Experience Notable Decline in May
The Bureau of Labor Statistics (BLS) reported a significant reduction in truck transportation jobs in May, with numbers returning to the levels recorded in November.
Job Statistics Overview
According to the BLS, seasonally adjusted employment in this sector dropped by 5,400 from April, bringing the total to 1,550,100 jobs—exactly matching the figures from November.
Notable Declines in Employment Trends
This decrease marks the third-largest since the job market began recovering in 2020, following the major decline reported in April 2020. The most substantial drop in the post-pandemic era occurred when Yellow Corp. closed down, resulting in a loss of 31,600 jobs in August, whereas May’s decline stands just behind this loss and the 5,700 jobs lost in September 2022.
Yearly Comparison and Revisions
Taking into account the Yellow Corporation losses and recent job drops, May’s total of 1,550,100 jobs is now 24,600 less than the July 2023 figure of 1,574,700, which was recorded shortly before Yellow filed for bankruptcy. The current total is 29,600 fewer than the same time last year.
Revisions and Unadjusted Job Figures
The May report also adjusted previous data for truck transportation jobs for April and March, reducing April’s jobs by 2,300 and March’s by 1,700. While economists often focus on seasonally adjusted numbers, the unadjusted figures depict a contrasting scenario. The unadjusted data shows an increase in truck transportation jobs, climbing to 1,548,000 from 1,538,600 in April, which was also revised down by 1,100 jobs.
Employment Challenges and Sector Insights
David Spencer, from Arrive Logistics, commented that the decline was anticipated due to low spot rates, which are adversely affecting contract rates, leading carriers to cut down on drivers. The current employment levels are nearly 30,000 jobs lower than in May 2023, reflecting ongoing pressure on asset-based carriers. Meanwhile, after a period of volatility in 2023, the warehousing and storage sector showed a modest increase of 700 jobs in May, stabilizing after numerous declines in previous months.
Additional Employment Statistics
The unemployment rate for the broader transportation and warehousing sector, including couriers and rail, rose to 5.5% in May from 4.7%, with a recent low of 3.3% last June. Average weekly hours worked dipped to 37.8, the lowest in a year. Shannon Gabriel from TBM Consulting highlighted that nearly 2.5 million individuals in the transportation sector on job search platform Indeed have declared themselves ready to work, indicating that despite some increases in tourism-related jobs, they aren’t sufficient to absorb the growing number of unemployed or soon-to-be unemployed individuals.
